UOP LLC, a wholly-owned subsidiary of a Honeywell International Inc (HON), recently announced that China's Jiangsu Sailboat Petrochemical Co. Ltd has obtained its license for advanced methanol-to-olefin (:MTO) process to convert methanol from gasified coal into key plastics building blocks. Honeywell has already licensed three (:MTO) projects with production scheduled to begin this year.
Jiangsu Sailboat – a subsidiary of Shenghong Group - will utilize the advanced MTO process to convert methanol from non-crude oil sources like coal or natural gas into ethylene and propylene. This MTO process technology is flexible and enables plan operators to address the market demand in an effective manner. The technology is well suited for the petrochemical producers in China facilitating access to cheaper coal, achieving higher yields and reduces their operating costs. We remain encouraged by Honeywell’s continuous efforts to launch new products and technologies and expand its business in geographical regions.
Located in Lianyungang City, Jiangsu Province, China, Jiangsu Sailboat is expected to produce 833,000 metric tons of ethylene and propylene annually once it gets operational in 2015. Additionally, the unit is also expected to provide feedstock to downstream units producing 4 million metric tons of petrochemical products annually.
Headquartered in Des Plaines, IL, UOP is a supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries across the globe.
Honeywell is a global diversified technology and manufacturing company with a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation. In the last reported quarter, Honeywell’s revenues remained flat year over year at $9.3 billion due to prevailing macroeconomic challenges.
Honeywell currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look now are Carlisle Companies Incorporated (CSL), Crane Co (CR) and Macquarie Infrastructure Company LLC, Inc (MIC), each carrying a Zacks Rank #2 (Buy)
More From Zacks.com